Calls For Policy Fix Grow As NY Rulings Limit Trustee Power

Law360, New York (July 22, 2013, 7:11 PM EDT) -- New York rulings that have sharply limited the ability of trustees to go after bankers, accountants and other corporate agents accused of exacerbating Ponzi schemes, bankruptcies and corporate meltdowns have led some attorneys to call for lawmakers to step in and expand trustees' power.

The Second Circuit’s June decision stripping Irving H. Picard — the federal trustee in the bankruptcy of Bernard L. Madoff’s brokerage — of the ability to target banks that some say aided the scheme marked yet another roadblock for victims seeking substantial...